Hiring craters in latest economic setback for Trump: August jobs report
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Hiring stalled again in August, with the labor market adding just 22,000 jobs and the unemployment rate at the highest levels since 2021, the Bureau of Labor Statistics said on Friday.
Why it matters: The economy is rapidly cooling, as global tariffs put pressure on America's businesses.
Of note: The report included revisions to prior months' data, showing the economy shed jobs in June — a decline of 13,000, compared to an originally reported gain of 14,000.
- That is the first time the labor market shed jobs since late 2020.
- July job gains were revised slightly higher, though, to 79,000, up 6,000 jobs from the original estimate.
Zoom in: Health care was among the few sectors to add workers last month, with 31,000 positions added.
- Federal government employment continued to decline last month, shedding 15,000 jobs. Meanwhile, the manufacturing sector — which the Trump administration said would benefit from its trade policy — lost roughly 12,000 jobs in August.
- The unemployment rate ticked up to 4.3%, bringing the jobless rate to the highest since Oct. 2021.
Between the lines: It is the first jobs report since President Trump fired the head of the Bureau of Labor Statistics — claiming, without evidence, that the data was "rigged" after revisions showed meaningfully slower jobs growth this summer.
The big picture: That is one reason why the report is being watched more closely than usual.
- The other reason: The Federal Reserve is expected to cut interest rates at a policy meeting later this month, a bid to shield the labor market from further weakening.
- The report appears to clear the way for the central bank to do so. Odds of three rate cuts this year soared to 70%, according to the CME FedWatch tool — up from 45%.
Yes, but: Several Fed officials have raised concerns about inflation risks in recent days, warning that Trump's trade policies might result in persistently higher costs from businesses and consumers.
The bottom line: America's job engine is stalling out after years of resiliency.
Editor's note: This story was updated with a new chart and additional context.
